The Ultimate UK Insurance Guide

the ultimate uk insurance guide - shieldwise
by shieldwise

Life in the UK is unpredictable, especially with high accident and crime rates. We might stumble upon horrifying situations at any moment which might cost us our most valuable possessions or even our lives.

But you can’t just hide away from there dangers in your homes. That’s why we have our insurance guide.

Luckily with amazing insurance policies protecting you, living in the UK got a lot safer. In this article, we will be discussing the different types of insurance available in the United Kingdom.

Legally required insurance cover in the UK

The UK government prioritized some insurances and made them compulsory for everyone so all of their citizens can lead financially-secure lives even in case of any accidents. These include:

Car insurance

Car insurance is mandatory if you plan on driving in the UK as only insured vehicles are permitted on the road. Moreover, this rule is there to protect all parties involved in an accident. There are several car insurance covers so people can choose the perfect one for them.

Third-party: This provides minimum cover and costs much less. If you cause an accident, it will not cover you. It only provides compensation if there are any other parties involved.

Third-party, fire & theft: This policy provides coverage in case the insured car is stolen or has any fire damage.

Comprehensive: In case of a terrible accident, this package will give clients full cover for any damages to their cars. This price of this policy varies drastically from company to company as it depends on driver profiles. Although it costs a lot, this is the most reliable and safe car insurance policy.

Some companies may provide special services such as road-side assistance, courtesy cars, and even tow truck services. It is best to browse all your options before getting it.

Home insurance

Home insurance is mandatory for landlords and mortgage offers. Landlords are legally required to ensure their buildings to avoid legal actions.

Building insurance covers any damages to the structural integrity of the building and permanent fixtures and fittings and in case of any damage; the insurance company will pay the clients. Although home insurance is mandatory for landlords, homeowners are not legally obliged to purchase a plan.

Social insurance

All workers in the UK, who earn above a minimum threshold, must pay for social insurance. It is very important to the UK government as these payments can fund the following:

  • Pension for the elderly
  • Maternity leave for all pregnant women
  • Allowance for the unemployed
  • Bereavement payments for the widows of war heroes

Optional insurance cover

Besides the mandatory insurance policies, there are tons of other policies in the UK provided by various insurance companies. Let’s have a look at them:

Health insurance

The UK government provides free medical care for all of its citizens which provides everything from doctor’s appointments to emergency surgeries.

Although it’s a free service, there are tons of private insurance plans, all of which are very flexible and you don’t have to wait around for the government to pay for your medical needs.

Dental insurance

We all know how expensive dental care in the UK can be. So to protect oneself from a huge dental bill and maintain proper dental hygiene, many people choose to get dental insurance.

There are hundreds of dental plan options out there to choose from. We highly recommend getting a dental insurance plan as dental care services cost a fortune.

Contents insurance

Contents insurance is there to protect all of your belongings in case of a fire, flood, or theft. In case of any damage, clients will receive full coverage for their properties.

The price varies from package to package. If you live in a neighbourhood with high crime rates, it’s better to get this plan in case someone breaks into your house.

Life insurance

These days life insurance is very common, and a lot of people choose this policy to provide for their families even after their deaths. Life insurance policies pay a large sum of money to the families of the insured in case of death or severe physical injuries.

Unemployment insurance

Unemployment insurance pays a percentage of your income in case you cannot work. It is not worth it as the UK government is already giving out an allowance for the unemployed.

Travel insurance

Many people choose a travel insurance policy when they travel outside of the UK. It provides full coverage in case of a loss of baggage, personal belongings, and missing flights. It’s a very useful thing to have for people who are always travelling.

Commercial insurance

Usually, commercial insurance is highly recommended for people who own a business to protect them from huge losses in case of any danger.

Commercial insurance policies protect in case of any damages to the work premises, damage to any business contents, and if any employees is hurt while working for you.

There are many commercial policies out there some of which are mandatory for all businesses. It’s always better for business owners to get insurance and avoid sudden pay-outs of large sums.


By now, you have a clear understanding of all the insurance policies available in the United Kingdom. Always remember to browse several insurance company options and prices as they can vary significantly.

Insurance companies don’t always provide 100% coverage so it’s very important for you to carefully understand their policies and choose a company with a good reputation.

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Categories: Insurance Tips
Tags: Guide